As the technological revolution continues, auditing firms face the challenge of harnessing and utilizing these technologies to their clients’ advantage. Many of these advanced technologies aren’t just a matter of choice but are essential for the future of auditing.
The most modern technology tools that are having a major impact on the auditor are data analytics, machine learning and robotic process automation. These tools help auditors gain a thorough understanding of client processes, inventory, and the system controls. They can then share the information to management and boards.
Blockchain is yet another emerging technology that can reduce the estimated time needed for the clearance of financial transactions to a few hours. This could enable continuous risk assessments to be performed during the audit period, rather than a one-time assessment at the end of the year.
Argus, an artificial intelligence (AI)-enabled software, is one example of a technology dramatically reducing the amount of manual processing and reviewing that is required during an audit. It employs machine learning and natural language processing to swiftly search electronic document files which allows auditors to concentrate on more important tasks, such as assessing risk and confirming results.
However, there remain a number of issues that could hinder the acceptance of these technologies. It can be particularly difficult to find the time to explore new technologies in firms that pay determined by the billable hours. Additionally, the cost of the initial investment as well as regular support and maintenance is a major consideration. These challenges can be overcome with the continued collaboration of audit firms, standard-setters and regulators.
